Bitcoin (BTC) Rebounds Past Key $69,000 Level Following May CPI Report
Bitcoin (BTC) has successfully reclaimed the pivotal $69,000 level following the release of the May Consumer Price Index (CPI) report. The unadjusted annual CPI rate for May was lower than anticipated at 3.3% compared to the expected 3.4%.
Notably, the US CPI remained unchanged for the month, despite forecasts predicting a 0.1% increase. CNBC’s Bob Pisani remarked, “A significant relief for inflation watchers. S&P futures surged 40 points, and bond yields dropped as the May CPI came in flat month-over-month, below expectations of a 0.1% rise. Excluding food and energy, it rose 0.2%, also below the anticipated 0.3% increase.”
In light of the latest inflation data, swap traders now overwhelmingly anticipate that the Federal Reserve will opt for a quarter-point rate cut in November.
Earlier in the week, Bitcoin had dipped to $66,000 on Tuesday due to a double whammy of ETF outflows and macroeconomic uncertainty. However, the leading cryptocurrency has now pared its recent losses, buoyed by the encouraging inflation data.
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Bitcoin’s resurgence mirrored gains in the US stock market, with S&P 500 futures climbing more than 50 points following the CPI report. Concurrently, the yield on the 10-year Treasury note fell to 4.273%, its lowest level since April 1.
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